The main differences between franchise stores and chain stores:

1. Different property rights relationships. Franchise chain (franchise chain) is a contractual relationship between independent entities. The capital of each franchise store is independent of each other and there is no asset link with the headquarters; while direct-operated chain stores are owned by the same capital, and each chain store is owned and owned by the headquarters. Direct operation and centralized management. This is the most essential difference between franchise chain and direct chain. Franchise headquarters require less capital because they use other people's funds to quickly expand the market share of their products. In contrast, the development of direct-operated chains is more susceptible to financial and personnel constraints.

2. The legal relationships are different. The relationship between the franchisor (headquarters) and the franchisee (franchise store) in a franchise chain (franchise chain) is a contractual relationship. The two parties establish a relationship by entering into a franchise contract and clarify their respective rights and obligations through the contract. In direct-operated chains, the relationship between the headquarters and branches is adjusted by the internal management system.

3. Different management models. The core of franchise chain (franchise chain) is the transfer of franchise rights. The franchisor (headquarters) is the transferor and the franchisee (franchise store) is the recipient. The franchise system is through the franchisor and franchisee signing a franchise contract. formed. The personnel and financial relationships of each franchise store are independent of each other, and the franchisor has no right to interfere. In direct-operated chain operations, the headquarters has ownership of each branch and has the right to decide on all specific matters in branch operation. The branch manager, as an employee of the headquarters, acts entirely according to the will of the headquarters.

4. The business fields involved are not exactly the same. The scope of direct-operated chains is generally limited to the commercial and service industries, while the scope of franchise chains (franchised chains) is much broader, except for commercial, retail, service, catering, manufacturing, high-tech information industries and other fields.

In layman terms, it can be understood like this:

There are two types of chains:

One is self-operated chain: the only legal person, all branches are invested and built for themselves , unified procurement, unified distribution, unified labeling, unified marketing strategy, unified price, and unified accounting.

The other is a franchise chain: the only trademark holder. The franchisee pays a part of the brand usage fee to the holder and uses the store's logo, color, image and other specifications in accordance with the holder's specifications. Building new stores. Each store is an independent legal person.

Chain stores include franchise stores, which are also called franchise stores, which are a form of chain;

Chain stores are branches like KFC that are consistent with the headquarters' business ideas.

A franchise store is a store where the owner purchases goods from the headquarters and makes its own profits and losses.

A chain store means that one store is developed and a bunch of stores are opened. A franchise store is a store that is developed. If you want to open a chain but are afraid of trouble, you can invite others to join you. Cooperation is the most successful.